Thursday, 13 November 2014

SATATE CAPITAL PARTICIPATION IN STATE-OWNED ENTERPRISES TEND TO DECLINE



State Capital Participation (PMN) in state-owned enterprises (SOEs) in 2010-2014 fluctuated and tended to decline. In 2010 the number of PMN in SOEs is as much as IDR 4,038.6 billion, rises to IDR 8,684.5 billion in 2011, and continued to decline to IDR 7,600.2 billion in 2012 and to IDR 2,000.0 billion in 2013, and rose slightly to IDR 3,000.0 in 2014.

Data from the Ministry of Finance obtained on Monday (October 6) mentioned that some of the result achieved from PMN allocation to SOEs are, among others, PT SMI (Sarana Multi Infrastructure), which up to 2012 has received PMN fund amounted to IDR 4.0 trillion. The role of PT SMI in supporting the programs and policies of the Government in an effort to accelerate infrastructure development can be reflected in the value of financing commitments of IDR 4,477.0 trillion, with a total value of projects financed at IDR 32,227.0 trillion. Thus, the resulting catalyst ratio produced by the Company calculated based on the project value to funding commitment is 7.2 times.

PT SMI also carried out preparation and arrangement of pre-feasibility study, exploration of interests of investors, preparation of tender documents, tender implementation assistance, and supporting the realization of obtainment of financing for show case projects of the Government in Public Private Partnership (PPP) scheme, especially the Umbulan drinking water provision project and Soekarno-Hatta Airport Train which has been implemented since 2011.

Meanwhile, PMN in PT Industri Kapal Indonesia (IKI) in 2012 amounted to IDR 200.0 billion is allocated in the framework of restructuring and revitalization of strategic state-owned enterprises. PMN funds have improved the performance of PT IKI which formerly experienced financial and operational issues, on December 31, 2013 the company recorded a net profit of IDR 8.6 billion, increase in revenues by 32.0%, and the company’s equity has become positive.

Related to the assignment to PT Askrindo and Perum Jamkrindo in order to support the distribution of KUR (People’s Business Credit) program, which until 2013 reached IDR 9,750 billion, KUR which was successfully given a guarantee until December 31, 2013 has reached IDR 138.5 trillion with a number of 10,032,178 debtors with average loans of IDR 13.8 million, and the level of nonperforming loans (NPLs) at 3.2%

PMN in SOEs is performed in order to increase business capacity and improve the capital structure of SOEs. PMN is generally allocated to: (1) support the achievement of Government program in a specific field, such as PMN in PT Penjaminan Infrastruktur Indonesia (PII), PT Sarana Multi Infrastruktur (SMI), and PT Sarana Multigriya Financial (SMF); (2) supports the assignment given by the Government to SOEs (PMN to PT Askrindo and Perum Jamkrindo); and (3) support the restructuring of SOEs (including PMN in PT Dirgantara Indonesia, PT PAL Indonesia, and PT Perusahaan Pengelola Aset).

Meanwhile, judging from the form of PMN, not all PMN allocated by the government in 2010-2014 is in the form of fresh money. Some PMN in SOEs is allocated in the form of conversion of principal debt of investment fund account and dividends as non-tax state revenues (PNBP), and grants of shares from other parties (in-out) in the state budget (APBN). For example, PMN in PT Askrindo and PT Bahana Pembinaan Usaha Indonesia (BPUI) in 2010 is derived from grant of shares of Bank Indonesia. PMN in the form of fresh money is mainly intended to support the Government’s policy in a particular field and support the Government’s policy in a particular field and support the assignment given by the Government to SOEs.

Business New - October 10, 2014

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